By Nick Chiu
Anadarko Petroleum Corporation (APC) and Phillips 66 (PSX) are two energy stocks, with higher margins and stronger ROEs compared with their peers, gaining with fundamental improvements. Both stocks will be analyzed fundamentally and technically in this article. Investing strategies will also be presented.
Anadarko Petroleum Corporation
APC was up 3.75% and closed at $86.40 on March 20, 2013. APC had been trading in the range of $56.42-$87.50 in the past 52 weeks. APC has a market cap of $43.25B with a beta of 1.53.
On March 20, 2013, UBS reiterated an overweight rating and increased its target price from $102 to $105 for APC. On March 18, 2013, Barclays also reiterated an outperform rating and increased the target price from $101 to $102 for APC. Analysts currently have a mean target price of $104.13 and a median target price of $100.00 for APC, suggesting 15.74%-20.52% upside potential. Analysts, on average, are estimating an EPS of $0.89 with revenue of $3.47B for the current quarter ending in March, 2013. For 2013, analysts are projecting an EPS of $4.02 with revenue of $15.05B, which is 12.20% higher than 2012.
On March 21, 2013, APC announced a U.S. Gulf of Mexico oil discovery that may produce more than half a billion barrels of crude. As reported by Bloomberg, the well, drilled to almost 6 miles (9.6 kilometers) beneath the seafloor in water 5,800 feet deep, encountered oil deposits more than 1,000 feet thick. John Malone, an analyst for Global Hunter Securities LLC believes the field may produce 700 million barrels of oil, more than twice a previous estimate.
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